Brandon, The Guide at section 2.2 says:
"Assets - Liabilities = Equity + (Income - Expenses)" In your case: 209.01 - 1497.72 = -18818.74 + (22975.27 - 5445.24) Or: -1288.71 = -1288.71 Yay! HTH, David On Jan 15, 2020, 13:13, at 13:13, Brandon Captain <caib...@gmail.com> wrote: >Hello, > >I have a rather general accounting question in regards to the Assets = >Liabilities + Equity formula, and how it relates to the other GNUCash >default accounts like Income and expenses. Those accounts are neither >assets, liabilities, nor equity. So I'm not sure how to factor them in >- >unless Income is an asset? Then why isn't it listed as a sub-account of >Assets? > >Take the following accounts for example: > >assets (debit) 209.01 >income (credit) 22975.27 >liabilities (credit) 1497.72 >expenses (debit) 5445.24 >equity (credit): -18818.74 > >(Equity breaks down as 3863.47 in contributions and -22682.21 in draws) > >If you add all the debits together, it comes out to 5654.25. Likewise, >if >you add all the credits together, you get the same figure of 5654.25 >(which >as I understand means that it balances). > >But assets = liabilities + equity would be ( 209.01 = 1497.72 + >-18818.74 ) >which just... doesn't work. Not without the other accounts in the >figure, >and not without reversing the signs since 1497.72 is actually -1497.72 >in >reality, and so forth. > >I'd appreciate any explanation on this. I've Googled and researched a >bit >but there's something I'm still not quite understanding. > >Thank you >_______________________________________________ >gnucash-user mailing list >gnucash-user@gnucash.org >To update your subscription preferences or to unsubscribe: >https://lists.gnucash.org/mailman/listinfo/gnucash-user >If you are using Nabble or Gmane, please see >https://wiki.gnucash.org/wiki/Mailing_Lists for more information. >----- >Please remember to CC this list on all your replies. >You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.